Analyzing newsvendor problems by one-shot decision approaches with considering regret

Author

Guo, Peijun ; Yang, Yating

Author_Institution

Fac. of Bus. Adm., Yokohama Nat. Univ., Yokohama, Japan

fYear

2011

fDate

6-9 Dec. 2011

Firstpage

32

Lastpage

35

Abstract

In this paper, a single-period inventory problem with partially known demand information characterized by possibility distributions is analyzed. Decision models are proposed based on one-shot decision approaches where three choices with considering regret of decision are provided. These three choices are used for determining which state of nature (demand) should be considered for each order quantity. Based on the selected states of nature (focus point), the optimal order quantity is obtained. Different kinds of focus points (demands) lead to different results (optimal order quantities) which reflecting a decision maker´s attitudes about possibility of demand and regret of decision.

Keywords

decision making; inventory management; statistical distributions; decision making; decision models; newsvendor problem analysis; one-shot decision approach; optimal order quantity; possibility distributions; single-period inventory problem; Decision theory; Investments; Operations research; Possibility theory; Pricing; Semantics; Uncertainty; One-shot decision theory; newsvendor problem; possibility theory; regret focus point;

fLanguage

English

Publisher

ieee

Conference_Titel

Industrial Engineering and Engineering Management (IEEM), 2011 IEEE International Conference on

Conference_Location

Singapore

ISSN

2157-3611

Print_ISBN

978-1-4577-0740-7

Electronic_ISBN

2157-3611

Type

conf

DOI

10.1109/IEEM.2011.6117873

Filename

6117873